Questions & Answers
Questions & Answers
4 available 4 • View allLiability for bounced cheques in case of joint signatory authority
4
Q: I was a partner in a company with joint signing authority for the bank account. I sold my share and the memorandum of association changed. However, due to some reasons or busy schedule, I could not change my signing authority from the bank.
My partner issued me a letter that for all released cheques, he will be responsible. Now, in the current situation, some cheques are bounced and police called me.
Please advise, what should I do? Will this letter and change in memorandum protect me?
My partner is still accepting his liabilities for all bounced cheques but he has no money to settle, and I am stuck. Kindly advise.

Dec 18, 2017
1731
Responsibility of partners for bounced cheques signed by the company manager
17
Q: Do the local sponsors have financial responsibility for bounced cheques from the company that they are sponsored?
If I got cheques but they were bounced and the person who signed the cheques (managing director) left the country. Company is in labor zone, retail, 2 operating shops.

Jul 26, 2017
15741
Obligation of the cheque signatory when he wants to leave the company
0
Q: I am working in a tourism company in Sharjah, the 100% ownership is with the sponsor. The company started in March 2019, after 3 years only, to change to LLC as per the license.
The sponsor gave me power of attorney to open a bank account so I am signing on cheques and all is going perfectly.
My company has 7 partners and they took various letters on the company letterhead and stamped for mutual agreement, and also my 2 blank cheques and one checkbook are with them.
Please advise, is there any issue if I quit the company?
I want to repay AED 50000 to the company because I paid credit to customers still not received, and I will pay but need few months time to repay the same. They threatened like talking more.
Please advise and how can you help

Oct 12, 2020
501
Multiple partners; transactions require all their presence. How to simplify?




2
Q: Good afternoon,
Our company has multiple partners, and every time we need to make changes or transactions that require their presence, it's very time-consuming and hectic.
Is there a solution that can save us time? Perhaps a virtual Power of Attorney (POA) could be considered.





+3
Dec 29, 2023
70
Legal blog
1 available 1 • View allBounced Cheques in the UAE: What You Need to Know in 2024 291
In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.
Oct 15, 2024
221982
Laws & Regulations
2 available 2 • View allFederal Law No. (2) of 2015 On Commercial Companies 15
The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.
Mar 25, 2015
29529
Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law 4
The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.
Sep 27, 2020
3531

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